Market Sizing

Key figures:

Total Market : 500b$ Entreprise software

TAM : 12.2 b$ (SCM Market) (expected to be 33b$ in 2026, growing by 14% per year)

SAM : 4b$ (Western Europe SCM market)

Distribution: SC planning 34%, SC execution 31%, sc procurement 32%.

Target Market : supply chain visibility and coordination 1,2b$

Valuation : Average Operating Margin is 43%. Which means if 1% market share 20M annual recurring revenue in the next 3 years.

Growth:

SCM Market is 12.2 B$ and growing 14% in 2017.

Cloud SaaS is growing by 40% in 2017. 4b€ cloud SaaS software in 2018. (expected to be 9b$ in 2023)

Expert point of view: Supply chain are becoming more lean⇒ more fragile⇒ reduce stock⇒ more disruptions and volatily. The need for Flowlity solution should grow even more than expected

Bottom-up market sizing:

We estimated that a company can pay in average 50k$ to connect to our network and interact with their suppliers and customers. Considering that we target first manufacturing companies in western Europe, and that we can attract 120 new customers per year with a team of 10 people (3 sales rep) by growing the network (40 new customers per year (2M$) per sales rep)

At this speed, we should be able to get to 6M$ of Average Recurring Revenue after a full year.

From the OECD website, we can consider that there is 216k manufacturers (among which 3% is doing more than 50M$ of turnover per year). So capturing the entire French market would mean getting conservatively 324M$ of revenue. Considering that France represents 15% of Europe's economy, by extrapolation, our first target market would mean roughly a market of 2,16 B$. We are getting to 16.2 B$ worldwide (France is 2% of world GDP).

Refs :

https://www.gartner.com/newsroom/id/3882873

https://www.statista.com/statistics/471256/saas-for-scm-worldwide-market-size/

https://www.supplychaindigital.com/scm/global-supply-chain-solutions-market-hit-329bn-2026

https://www.grandviewresearch.com/industry-analysis/the-global-supply-chain-analytics-market

https://www.macrotrends.net/stocks/charts/SCM/stellus-capital-investment/profit-margins